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IgorC [24]
3 years ago
5

Suppose the Federal Reserve engages in open-market operations. It sells $20 billion in U.S. securities. It also raises the reser

ve ratio. This causes excess reserves to _______, the money supply to ________, and the money multiplier to ________.
a. decrease; decrease; decrease
b. decrease; increase; increase
c. increase; increase; increase
d. increase; decrease; decrease
Business
1 answer:
klio [65]3 years ago
8 0

Answer: The correct answer is "a. decrease; decrease; decrease".

Explanation: Suppose the Federal Reserve engages in open-market operations. It sells $20 billion in U.S. securities. It also raises the reserve ratio. This causes excess reserves to <u>decrease</u>, the money supply to <u>decrease</u>, and the money multiplier to <u>decrease</u>.

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The standard quantity that is produces is multiplied to the standard price. The product is subtracted to the quantity variance and will be divided to the standard price. The product you have acquired will be the units that are produced.

4,500 pounds x $2.50 = 11,250
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